Sage Closes Final Tranche of Private Placement

TORONTO, ONTARIO, Oct 26, 2010 (MARKETWIRE via COMTEX News Network) --

Sage Gold Inc. (TSX VENTURE: SGX) (the "Company") announces the closing of the last tranche of a non- brokered private placement of 4,416,666 units at Cdn $0.18 per unit, each unit consisting of one (1) common share plus one-half (1/2) common share purchase warrant for gross proceeds of Cdn $795,000.

Each whole common share purchase warrant shall entitle the holder to purchase one share at the exercise price of $0.28 for a term of two (2) years from the closing date of the offering. If the Company's shares trade at or above $0.40 per share for 21 consecutive trading days the Company may, at any time after the expiry of the statutory hold period, accelerate the expiration of the Warrants upon not less than 30 days written notice by the Company, and thereafter repurchase any unexercised Warrants at $0.001 per underlying common share.

The Company may pay finder fees of up to 8% cash plus options to purchase units which are equal to 8% of the number of units sold by the finders. The warrants shall expire 24 months after the closing of the offering.

This closing completes the non flow-through private placement totalling $1,520,000 representing 8,444,444 units at $0.18 per unit.

All securities issued in connection with this financing will be subject to a four-month hold period from the closing date.

The net proceeds of the offering will be used for the exploration and development of the Clavos mine near Timmins, Ontario and the exploration of the Company's properties in the Beardmore - Geraldton area of NW Ontario and for other general corporate purposes.

Although the TSX Venture Exchange has conditionally approved this private placement, all closings of this private placement are subject to final acceptance from the Exchange.

OPTIONS ISSUE

Sage will also issue 1.9 million options exercisable at $0.25 to directors, consultants and employees of the Company subject to TSX.V and Board of Directors approval.

SAGE is a mineral exploration and development company which has primary interests in exploration and development properties in Ontario. Its main properties are the Clavos Gold mine in Timmins and its exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com